Tenable shares tumble on weak earnings outlook

Published 29/04/2025, 21:30
Tenable shares tumble on weak earnings outlook

Investing.com -- Tenable Holdings, Inc. (NASDAQ:TENB) saw its shares plummet 10.2% after the exposure management company reported first quarter earnings that beat expectations but provided disappointing guidance for the second quarter.

Tenable posted adjusted earnings per share of $0.36 for Q1 2025, surpassing analyst estimates of $0.28. Revenue came in at $239.1 million, up 11% YoY and above the consensus forecast of $233.73 million. However, the company’s outlook for Q2 fell short of expectations, projecting EPS of $0.29-$0.31 compared to analysts’ $0.35 estimate.

"We had a strong start to the year with better-than-expected results on both the top and bottom line," said Steve Vintz, Co-CEO of Tenable. Despite the positive Q1 performance, investors appeared focused on the weaker-than-anticipated guidance.

For the second quarter, Tenable expects revenue between $241-243 million, slightly above the $240.8 million consensus. The company’s calculated current billings, a key metric, grew 9% YoY to $215.4 million in Q1.

Tenable added 361 new enterprise platform customers and 54 net new six-figure customers during the quarter. The company also completed the acquisition of Vulcan Cyber Ltd., aiming to enhance its exposure management platform.

While Tenable’s Q1 results exceeded expectations, the sharp stock decline reflects investor concerns about the company’s near-term earnings trajectory. The market reaction underscores the importance of forward guidance in shaping investor sentiment, even in the face of strong current quarter performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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